During the 1990s broad interest resurfaced among the public and policymakers on the subject of child labor, this time concentrating on the plight of children in the developing world.
... See More + The children summit in New York (1990), the world summit on social development in Copenhagen (1995), and the International Labour Organization (ILO) adoption of convention 182 on elimination of the worst forms of child labour (1999) are clear evidence of the increasing international concern. In several conferences leading up to the 1999 ILO convention (Geneva 1996, Amsterdam 1997, Cartagena 1997, and Oslo 1997), the same commitment to combat child labor was expressed, along with the need for closer cooperation between international organizations, a point emphasized especially in Oslo. With the adoption of the millennium development goals in 2000, the realization quickly grew that international and national efforts to address key developmental objectives will objectives will be hampered unless there are adequate data for measuring monitoring and managing results; sufficient capacity to use the data at the local level supplemented by technical assistance; donor harmonization of policies for setting global (rather than donor) priorities and exploring synergies among all stakeholders; and conditional on the previous three areas timely and relevant policy interventions.
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The problem of child labor has moved from a matter of regional and national concern to one of international debate and possible global persuasion and policy intervention.
... See More + In crafting policy for mitigating this enormous problem of our times, it is important to start with a proper theoretical and empirical understanding of the phenomenon. What gives rise to child labor, and what are its consequences? What interventions might end child labor without hurting children? A well-meaning but poorly designed policy can exacerbate the poverty in which these laboring children live, even leading to starvation. The article surveys the large and rapidly growing literature on this subject, focusing mainly on the new literature based on modern economic theory and econometrics. It also looks at some of the broad policy implications of these new findings, with the objective of contributing to better informed discussion and policy design.
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Long neglected by economists, child labor has experienced a sudden resurgence of interest as a subject of research and analysis since the mid-1990s.
... See More + This is surprising at first glance, because the global incidence of child labor has been on the decline for several decades now. What accounts for the increased interest? One factor is the growing emphasis in the development literature on poverty reduction, particularly among the most vulnerable sections of the population, which includes children, especially working children. Simultaneously, with the heightened recognition of the importance of human capital accumulation as a catalyst and perhaps even a prerequisite for development, child labor is viewed as a major impediment to economic progress.
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In this paper the authors present, and confront two approaches to modeling child labor. The first assume that parents are altruistic towards their offspring, while the second sees children as an asset to parents, especially in terms of old age security.
... See More + The paper also extends the analysis to consider fertility as endogenous and jointly determined together with children's activities. The paper uses a simple basic model that try to frame the main effects discussed in the literature, while providing some novel results in terms of the consequences of treating fertility as endogenous and of the effects of uncertainty in expected old age transfers from children.
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This paper reviews Bank interventions that supported the welfare of children in the last decade. Though the Bank has always addressed children's development, and protection through its focus of broader economic development, and social protection, it has recently intensified its efforts to directly address children's issues in the context of a broader international effort to improve the general welfare of children and, more specifically, to reduce child labor.
... See More + This paper focuses on Human Development projects with an objective relating to children, or that are expected to have an indirect, but non-trivial impact on children. In the last decade (FY1990-2000), the Bank financed close to 635 Human Development projects, of which 302 projects, fully or partially supported child welfare, development and protection - and the focus of these interventions is discussed in this paper.
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This paper surveys many aspects and issues of child labor, including its causes and effects as well as policies associated with it. Child labor has come to be considered an expression of poverty, both a cause and an effect of underdevelopment.
... See More + Child labor cannot be viewed in isolation from educational, health, fertility, and technological issues; and is not necessarily an aberration but a rational household response to an adverse economic environment. With this in mind, the following proposition was supported - that forbidding children to work or making school attendance compulsory without changing the economic environment may, if effectively enforced, leave children worse off. There is a tendency to believe that income redistribution from the rich to the poor is more powerful for reducing child labor than a universal income rise. It is also indicated that child labor cuts across policy boundaries: health, education, labor market, capital security, criminal law, international peace keeping, income growth, and distribution all have a bearing on child labor. Therefore, reducing child labor cannot be regarded as just another policy issue.
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This book describes and analyzes critical aspects of the labor market and social protection in the Arab world. The authors address the interrelationship between labor, human development, and social well-being in the Middle East and North Africa region -- an interaction that is viewed against the backdrop of a globalization process that is a crucial shaping factor in national and international relations alike.
... See More + The authors scrutinize the implications for workers of the new forms of insecurity being ushered in by the globalization era. At the forefront is the issue of social protection, which creates several dilemmas for policymakers, since formal social security covers only a small percentage of the labor force. The idea of social reinsurance, which would integrate the informal sector and allow for social dialog, emerges at various levels, and there is general agreement that any such dialog, or new social contract, must include government, the private sector, and civil society.
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The development of industrial relations in different countries, can be essential in their efforts to balance competitiveness, with equitable wages, and improved working conditions.
... See More + Consequently, a well-functioning labor market is essential for solid economic performance, as well as future economic growth, and, for the well-being of workers, and their families. And, the effects of globalization on workers, on firms, and on macroeconomic performance, relate critically to labor institutions such as, trade unions, and dispute resolution mechanisms. "Unions and Collective Bargaining" is a comprehensive, reference book which evaluates the economic effects of unions, and collective bargaining. This book provides a detailed survey, and synthesis of the economic literature on trade unions, and collective bargaining, and their impact on micro- and macroeconomic outcomes. It shows the effects of collective bargaining in different country settings and time periods.
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The causes and consequences of child labor are examined within a household decision framework with survival uncertainty and endogenous fertility.
... See More + The data come from a nationally representative survey of Indian rural households. The complex interactions uncovered by the analysis suggest that mere prohibition of child labor, or the imposition of school attendance, would make things worse, and would be difficult to enforce. Beneficially reducing child labor requires changing the economic environment to which the work of children constitutes, in the great majority of cases, the rational response. Suitable policies include capillary provision of schools, and public health improvements. The effects of these policies go far beyond direct impacts. They have favorable indirect repercussions on the school attendance, educational expenditure, labor participation, and nutritional status of children. They also discourage fertility. Women's education, and income re-distribution are also helpful, but land re-distribution may be counterproductive.
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The report examines the evaluation results of active employment programs in labor markets, including results from a number of individual studies on the subject.
... See More + Although most of such studies refer to member countries of the Organization for Economic Cooperation and Development (OECD) - particularly the United States, Canada, The United Kingdom, Sweden, and Germany - this report includes information on transition economies, and developing countries, such as Hungary, Poland, The Czech Republic, Turkey and Mexico. By and large, the efficacy of these programs suggest that: certain programs- notably salary subsidies, and training for young people, are seemingly not cost-effective instruments for reducing unemployment, rather other instruments, such as assistance in job searching, will most likely have positive employment impacts, provided the appropriate context is in place, given that most of the active labor market programs' cost-effectiveness, depends not only on the context, but on the global macroeconomic framework, and on the labor market where such programs were conceived. Findings suggest that lessons on program efficiency from developed countries, probably may not be directly applicable to developing countries, given the lack of administrative capacity to ensure the establishment of such programs, and the weak control, and evaluation systems to study program efficiency in developing countries.
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This paper summarizes key aspects of family allowances programs across the world and presents information on their characteristics in a cross-country comparative context.
... See More + Family allowances can be universal (paid to all resident families with a specified number of children) or employment-based (whereby workers receive additional pay depending on the size/composition of their family). Their characteristics include eligibility conditions, source of funds, benefit levels, and administration. These characteristics differ not only across economies but also over time in the same country as governments strive to tune unemployment policies to macroeconomic and labor conditions.
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The study reports evidence based on recent evaluation of active labor market programs, in developed countries, as well as on developing, and transition economies.
... See More + While a number of unresolved technical issues, and a variety of data problems in specific surveys, and administrative information, tend to affect reliability for guiding public policy, some generalizations about active labor programs can be made. These programs reveal that public works programs can help disadvantaged groups, providing poverty/safety nets, but are ineffective instruments, in the pursue of permanent employment, whereas, job search assistance has positive impacts, and is cost-effective, although this assistance does not seem to improve employment, nor wages. In addition, training for long-term unemployed, may be helpful under an improving economy, but cost-effectiveness is usually disappointing, and, retraining has proven to be more expensive, and ineffective than job search assistance. Likewise, youth training provides no positive impact on employment prospects, and cannot be a substitute to education systems failures. Micro-enterprise development, and wage subsidy programs are usually associated with displacement effects, unlikely to have positive impacts. Modest programs, sound impact evaluation techniques, and cost-effectiveness are strongly recommended.
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This report examines the situation of child labor in Thailand in the last decade. It finds that child labor has decreased significantly, for example, the labor force participation rates of those aged 13-14 years has almost halved since 1990.
... See More + Despite this decline, 1.6 million children below the age of 16 are out of school of whom 1.2 million are between 12 and 14 years. Most of them are from poor families. Many face harsh conditions of employment that adversely affect their physical and mental development and can lock them into poverty in the future thus perpetuating a vicious cycle. Empirical analysis suggests that at younger ages (below 14) direct education costs deter school attendance. As the child gets older, income effects become more important determinants of child labor than the costs of education. This report examines what incentives the household can be provided with to keep children in school, the role of public education, and what can be done in the labor market through additional measures for those children who, notwithstanding the previous two interventions, will continue to be at work. Education subsidies are found to be justified from a social policy point of view: indeed there is a failure in the market for education/child labor. However, subsidies alone will not reduce child labor/increase education by much. Rather, public support to basic education should continue along with policies that enhance growth and reduce poverty.
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This country summary presents a review of the vocational education, and training (VET) system in Australia, exploring the significant expansion of VET since 1974, with an emphasis on the realization that expansion alone was not a solution, rather, what the country needed was to confront some institutional issues, which were inhibiting progress.
... See More + The relevance of Australia's experience, for either developing countries, or transition economies, thus lies in its ability to achieve institutional change, for, while the VET system is embedded in two institutions: the government, and the industrial relations framework, the establishment of a single national ministry, encompassing employment, education, and training, ensured that competing priorities could be resolved more effectively. The summary suggest that linkages with the labor market must be predominant, both forging links with industry in the management of VET, as well as taking into account the internal structures of government, whereas, the financing of VET, should support the direction of market forces.
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This report summarizes key aspects of unemployment benefit schemes across the world and presents information on their characteristics in a cross-country comparative context.
... See More + Unemployment benefit schemes can be of insurance type (paid from employer/worker contributions to provide insurance against "the risk of becoming unemployed") or assistance type (means tested paid to the unemployed poor). Their characteristics include coverage, eligibility conditions, source of funds, and benefit levels and administration. These characteristics differ not only across economies but also over time in the same country as governments strive to tune unemployment policies to macro and labor conditions. Therefore, the reader should consider the information in this report as approximately correct at the time of publishing and should refer to the indicated sources for greater reliability.
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This report examines the level and changes in female and male participation rates, employment segregation, and female wages relative to male wages across the world economy.
... See More + It funds sufficient evidence to support the view that labor markets in developing countries are transformed relatively quickly in the sense that gender differentials in employment and pay are narrowing much faster than they did in industrialized countries. However, the report evaluates the inefficiencies arising from persisting gender differentials in the labor market and finds them to be potentially significant. The estimates also indicate that the resulting deadweight losses are borne primarily by women while men gain mainly in relative terms-there are no real winners from discrimination. The paper concludes that growth benefits women at large, inequalities can have significantly adverse effects on welfare, and market-based development alone can be a weak instrument doe reducing inequality between the sexes. To break the vicious cycle of women's low initial human capital endowments and inferior labor market outcomes compared to men's, the report proposes greater access to education and training for girls and women, enforceable equal pay and equal employment opportunities legislation, a taxation and benefits structure that treats reproduction as an economic activity and women as equal partners within households, and a better accounting of women's work to include invisible production.
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Child labor is a global issue. An estimated 250 million children are working worldwide. This paper proposes that the World Bank take stronger action to help address the issue more proactively, and outlines what to do and how.
... See More + The basic facts and issues about child labor, relevant laws, and the positions of the international organizations are described in Section I. This is followed by a brief discussion of major approaches taken toward child labor in Section II, and a discussion of the Bank's position in Section III. In its lending activities, the World Bank should: a) design and introduce new projects or project components to reduce the harmful effects of child work; b) emphasize child labor issues more in other projects; and c) introduce child labor concerns in social assessments for projects where relevant. In its nonlending activities, the Bank should: a) bring child labor issues into the policy dialogue in countries where harmful child labor is a serious problem, b) undertake more ESWs (economic and sector works) and research on child labor issues; c) increase staff awareness of child labor; and d) strengthen partnerships with others who share a similar concern.
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Child labor is a global issue. An estimated 250 million children are working worldwide. This paper proposes that the World Bank take stronger action to help address the issue more proactively, and outlines what to do and how.
... See More + The basic facts and issues about child labor, relevant laws, and the positions of the international organizations are described in Section I. This is followed by a brief discussion of major approaches taken toward child labor in Section II, and a discussion of the Bank's position in Section III. In its lending activities, the World Bank should: a) design and introduce new projects or project components to reduce the harmful effects of child work; b) emphasize child labor issues more in other projects; and c) introduce child labor concerns in social assessments for projects where relevant. In its nonlending activities, the Bank should: a) bring child labor issues into the policy dialogue in countries where harmful child labor is a serious problem, b) undertake more ESWs (economic and sector works) and research on child labor issues; c) increase staff awareness of child labor; and d) strengthen partnerships with others who share a similar concern.
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This report serves as a conceptual background piece for the development of the Social Strategy Paper (SSP). To develop the conceptual underpinnings, the objectives and instruments of strategy papers (SP) are viewed under the rubric of Social Risk Management (SRM).
... See More + SRM consists of public measures intended to assist individuals, households, and communities in managing income risks in order to reduce vulnerability, improve consumption smoothing, and enhance equity while contributing to economic development in a participatory manner. To support the approach and its logic, the structure of this note is as follows: Chapter 2 sets the stage and presents global trends, definitions, and outlooks. Chapter 3 presents key issues of SRM, from the reasons for World Bank concern to a typology of strategies and instruments, and ends with the role of the main actors. Chapter 4 focuses on the boundaries of SP/SRM and on three key policy issues to balance equity, efficiency, and political sustainability. Chapter 5 ends with a preliminary list of ways in which the new framework may affect our view of SP and the development of better instruments.
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